NDH-1 and NDH-4: Nidhi Company Compliance Forms

NDH-1 and NDH-4 are MCA forms under the Nidhi Rules, 2014. NDH-4 is the application a company files to be declared a Nidhi company. NDH-1 is a statutory compliance return for Nidhis. Both sit alongside NDH-2 and NDH-3, so it helps to know what each one does.

Why these forms matter

A Nidhi takes deposits from and lends to its own members only, so it works under tighter rules than an ordinary company. Without the declaration, a company that calls itself a Nidhi is not recognised as one. If you are starting out, see how Nidhi registration works before you plan these filings.

The four forms in short

• NDH-4: application to the Central Government for declaration as a Nidhi company, filed after the company meets the Rules’ conditions.
• NDH-2: request to the Regional Director for more time if the member count or funds are short after the first year.
• NDH-1 and NDH-3: compliance returns that report the Nidhi’s membership, deposits and loans to the MCA. Check the current due dates on the MCA portal, as they have been revised over time.

Key points before you file NDH-4

• The Rules ask for at least 200 members.
• Net owned funds and the ratio of funds to deposits must meet the Rules.
• A director’s certificate backs the member and fund figures.
• The company’s objects must stay limited to thrift among members.

For a new Nidhi, the filing window runs from the end of its first year after incorporation, and the Regional Director can extend it. Existing Nidhis had a fixed window when the 2019 amendment came in.

Staying compliant after declaration

Filing NDH-4 is not the end. Returns, ratios and member records need steady upkeep, which is what our Nidhi company compliance service covers. Many Nidhis also keep deposits, loans and member ledgers in Nidhi management software, so the return figures are ready when needed.

Common mistakes

• Filing NDH-4 before reaching the member count.
• Letting the first year pass without applying for an extension on NDH-2.
• Lending or taking deposits from non-members.
• Returns that don’t match the books.

Related guides: MCA and ROC, Board resolution, RBI approvals for NBFC and fintech

FAQs

What is NDH-4?

It is the application for declaration as a Nidhi company under the Nidhi Rules, 2014.

How many members must a Nidhi have?

The Rules require a minimum of 200 members, certified by a director.

What if we can’t meet the conditions in the first year?

You can apply on NDH-2 to the Regional Director for an extension of up to one year.

Unsure which Nidhi form applies to you? Talk to a Taxhint expert.